Friday, December 25, 2009

Job Order Costing Multiple Choice

Answer this accounting problem related to a job order costing system. 

Assume that a company uses a job order cost system that uses pre-determined manufacturing overhead rates to calculate its manufacturing costs. In the accounting ledger, indirect materials issued into production usually are recorded as an increase in:  

Multiple Choice Answer Options:

A) Work in Process inventory (WIP)
B) Manufacturing Overhead.
C) Finished Goods Inventory Account
D) Raw Materials Inventory

Correct Answer: B

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